Who Ordered All the McMansions? 10 Cities Where They’re Piled Highest

Excerpt: You know them when you see them.

The imposing, ostentatious structures looming over surprisingly wee plots of land. The crazily mismatched architectural styles. The hipped roofs, gabled roofs, and pyramidal roofs-all on the same house! The bank columns. The front yard Romanesque fountains. The puzzling profusion of window sizes and types. The gigantic, two-story front doors.

Click here for more info and where there are lots of them:


Appraisal Business Tips 

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

For Covid Updates, go to my Covid Science blog at covidscienceblog.com

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To read more of this long blog post with many topics, click Read More Below!!

NOTE: Please scroll down to read the other topics in this long blog post on fraudulent appraisals, horror story house, mortgage origination stats, Covid tips for appraisers, etc.


‘American Horror Story’ house has become a nightmare: lawsuit

Owners of the $3M home claim “daily intrusions” from fans

Excerpt: What a nightmare.
The owners of the “American Horror Story” house in Olympic Park have sued the brokers who negotiated the $3.2 million deal and the former owner for failing to disclose its connection to the FX show.

Since the couple purchased the home in 2015, it has become a “macabre tourist attraction” for fans of the horror show who “trespass, attempt to break in, and [create] a significant nuisance,” according to the lawsuit.

ASB meeting live streaming 4-20-17

Appraisal Standards Board Public Meeting Las Vegas, NV – April 20, 2018 9:00 am – 12:00 pm PT
The Appraisal Standards Board (ASB) will conduct a Public Meeting on April 20, 2018, in Las Vegas, NV, where input will be solicited on the Discussion Draft of Potential Areas of Change for the 2020-21 edition of Uniform Standards of Professional Appraisal Practice (USPAP). For the first time, the ASB will also be live streaming the meeting. All are encouraged to attend the meeting in person or watch remotely via live stream.
Questions? Please contact Aida Dedajic, Standards Board Program Manager and Editor at aida@appraisalfoundation.org.
My comment: I  LOVE LIVE STREAMING! I have attended, and spoken at, a few ASB meetings over the years. Worth seeing how they work.  You can send in your comments later if you are watching online. I signed up for streaming, although Las Vegas is a fun place for a meeting ;> Assuming you make it to the meeting – lotsa distractions!!

Moody’s: Appraisal alternatives pose new credit risks

Could weaken credit quality of new RMBS

Excerpt: The use of technological alternatives to traditional residential property appraisals is likely to expand in the coming months and years, yet it could bring new risk to the mortgage industry, or so says a new report from Moody’s Investors Service.

Note: RMBS = Residential mortgage backed securities.

My comment: FYI, hybrid appraisals are used for RMBSs. I am writing an article for the paid Appraisal Today newsletter about Desktop appraisals – hybrid, comp checks, reviews, etc. Fees, USPAP, etc. I was going to write just about hybrids, but desktop appraisals have been done for a very long time. Did you ever do a comp check? They are desktop appraisals. Reviews with value opinions are usually desktop appraisals.

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What is a bedroom?

By Doug Smith, SRA, AI-RRS

This can be a controversial topic!!

What do Fannie, FHA, International Building Code, International Residential Code and local jurisdictions, say? The Closet Myth, septic tanks, tandem rooms, etc. etc.

In the April, 2016 issue of the paid Appraisal Today, available to paid subscribers.  
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Correction on last week’s email newsletter. I got the commercial and residential waivers mixed up!!
Many thanks to Isaac Peck of Workingre for letting me know about this error

U.S. regulators ready to ease requirements for commercial appraisals – changes from over $250,000 to $500,000
Coalition sends letter opposing commercial change
Appraisal waivers – residential rural properties
Excerpt: This bill, if signed into law, will allow lenders to bypass appraisals for any property with a ‘transaction value’ of $400,000 or less (this is moving the de minimus goal post) if the lender was unable to find an available appraiser to complete an appraisal “within a reasonable amount of time”… that time frame apparently as determined by a regulator agency with jurisdiction over the lender. The bill shows ‘exceptions’ to this as per other laws.

7 Types of Real Estate Allowed in a Self-Directed IRA – a great appraiser retirement plan

Excerpts: Self-directed IRAs are the only retirement accounts that allow investors to pursue alternative investments.

When investing through a self-directed IRA, your real estate investment options are nearly endless. Choose between rental properties (both residential and commercial), undeveloped land, fix-and-flip opportunities, and more.
My comment: the appraisers I know who retired early all had real estate investments. I am always surprised how few appraisers do this. Maybe we are too cautious? I had a house and a duplex. I sold my house and moved to my duplex – tenants pay all expenses plus I have income. I bought the duplex in 1985 and kept it as my investment for retirement. Paid $150,000. Worth about $850,000 now. I shoulda bought more!!

Countrywide, LandSafe accused of fraudulent appraisals during housing boom

Plus, Mueller says Manafort committed mortgage malfeasance
Excerpt: The lawsuit alleges that, as part of the scheme, LandSafe cherry-picked certain appraisers, withheld information, and took other actions outside of the Uniform Standards of Professional Appraisal Practice to generate appraisals that benefited the lender.

According to the lawsuit, plaintiffs were charged between $300 and $600 for each of the allegedly fraudulent appraisals.

The lawsuit alleges violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), a federal law originally designed to combat organized crime.

My comment: Above I see some concern about alternative appraisals today and appraisal waivers…. Hmmm…. Regulations are cyclical of course. Money triumphs over caution.
HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, go to www.mbaa.org 
Note: I publish a graph of this data every month in my paid monthly newsletter, Appraisal Today. For more information or get a FREE sample issue go to https://www.appraisaltoday.com/products.htm or send an email to info@appraisaltoday.com . Or call 800-839-0227, MTW 7AM to noon, Pacific time.

Mortgage applications decreased 6.6 percent from one week earlier

WASHINGTON, D.C. (February 21, 2018) – Mortgage applications decreased 6.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 16, 2018.

The Market Composite Index, a measure of mortgage loan application volume, decreased 6.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 3 percent compared with the previous week. The Refinance Index decreased 7 percent from the previous week. The seasonally adjusted Purchase Index decreased 6 percent from one week earlier. The unadjusted Purchase Index increased 1 percent compared with the previous week and was 3 percent higher than the same week one year ago.

The refinance share of mortgage activity decreased to its lowest level since July 2017, 44.4 percent of total applications, from 46.5 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.4 percent of total applications.

The FHA share of total applications decreased to 9.9 percent from 10.1 percent the week prior. The VA share of total applications decreased to 10.0 percent from 10.1 percent the week prior. The USDA share of total applications remained unchanged at 0.8 percent from the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to its highest level since January 2014, 4.64 percent, from 4.57 percent, with points increasing to 0.61 from 0.59 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) increased to its highest level since January 2014, 4.62 percent, from 4.55 percent, with points increasing to 0.50 from 0.47 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to its highest level since April 2011, 4.58 percent, from 4.54 percent, with points decreasing to 0.71 from 0.73 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to its highest level since April 2011, 4.02 percent, from 4.00 percent, with points increasing to 0.66 from 0.65 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs decreased to 3.72 percent from 3.74 percent, with points increasing to 0.39 from 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

If you would like to purchase a subscription of MBA’s Weekly Applications Survey, please visitmba.org/WeeklyApps, contact mbaresearch@mba.org or click here.

The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.

Ann O’Rourke, MAI, SRA, MBA
Appraiser and Publisher Appraisal Today
2033 Clement Ave. Suite 105
Alameda, CA 94501 Phone 510-865-8041
Fax 510-523-1138
Email   ann@appraisaltoday.com

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